Capital Roundup: Local firms close summer with $426M in private funds

Privately held companies and investment concerns raised $426 million from debt and equity sales in the six weeks ended Sept. 14, with a handful of hedge funds and technology startups accounting for the brunt of the fundraising.

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To be sure, the flurry of securities sales benefited a diverse group of organizations — both from an industry standpoint as well as their stages of development — and serves as a nod to the overall health and balance of the Bay State’s economy.

According to recent regulatory filings, the technology sector raised over $66 million during the period analyzed.

Tops among all technology firms that raised capital between Aug. 1 and Sept. 14 was Waltham-based Metratech Corp., a developer and vendor of billing software, which raked in $30.7 million. Another major contributor to the technology sector’s take was Bedford-based iWalk Inc., a maker of cutting-edge prosthesis for amputees, that raised $13.3 million on Aug. 31, according to the Securities and Exchange Commission. The company’s latest fundraising comes roughly a year after it closed on a $15 million fundraising round.

Hedge funds also fared well, raising $88.2 million during the period analyzed. The sector’s biggest fundraiser since Aug. 1 was Mast PC Fund L.P., a Boston hedge fund located at 200 Clarendon St. in Boston’s Back Bay neighborhood. Mast, which listed David Steinberg and Adam Kleinman as its principal officers, raised $47.75 million during the six-week span. Other hedge funds that raised cash over the period in question included a “tax-efficient” bond fund managed by Income Research & Management of Boston ($27 million); a large-cap growth fund managed by Columbia Investment Management, a subsidiary of Ameriprise Financial ($23.46 million); and North Trail Partners of Boston ($14.6 million).

Michael Giese, the managing partner of North Trail Partners, says that now is an ideal time for privately held enttities to vet fundraising opportunities with prospective investors.

“Lots of these opportunities are better exploited within a private investment partnership because everything is disclosed and taken care of by the offering memorandum and the limited partner agreement, thus freeing the manager from a burden of a lot of paperwork down the road,” he said.

Giese added that the company has raised an additional $400,000 in capital since Aug. 10, lifting North Trail's total fundraise to $14.6 million.